The Empirical Study About Correlation Of Earnings Management And Accounting Earnings Information Quality In Listed Companies

This paper mainly discusses the empirical study about correlation of Earnings Management and Accounting Earnings Information Quality in listed companies. The article is divided into five major sections:The first part is literature review. It mainly introduces the purpose and significance of the study in this paper, including the earnings management and accounting earnings information quality in the domestic and abroad. Earnings Management is an important area for the Positive Accounting emerged in the late of 1980s in abroad. The study of Earnings Management is helpful to perfect the standards of accounting, to reduce the distortion of accounting information, to improve the accounting earnings information quality, and to improve management in corporation.The second part is mainly about the effects to accounting earnings information quality, which come from the earnings management in a listed company. This part analyses the effects to accounting earnings information quality from the meanings, motivations and ways of earnings management under the standards of accounting and the flexible space of accounting system.The third part is entering the core of this paper——the Empirical Analysis about the earnings management and accounting earnings information quality in a listed company. This paper is primarily aimed at the sample of companies listed on China's manufacturing industry. First of all, in terms of non-profit model, according to the opinions of represents of this model, the effect elements are the same in the specific industry, Then choose a representative indicator of the financial surplus as accounting information, and use these financial indicators and manipulative accrued profit to build a model. SPSS statistical software will analyze their relevance. The fourth part will analyze the empirical test results of measurement model, especially the second model. The analyses include correlation of explanatory variables in the model, descriptive statistics, the variables of the model fit, F test and correlation of explaining between variables and explanatory variables. From the results which come from SPSS statistical software, we can know that the correlation coefficient between every two explaining variations is relatively small, and this is guided by the principle of the non-linear mentioned previously.The fifth part is the end of this paper, it mainly describes new points, study limits and some advises of this paper. In order to avoid risks brought by surplus management, before making investment decisions ,users of the accounting statements need to pay attention to the financial reports related financial targets, on one hand; and the public notice of the Stock Exchange , on the other. These proposals will be helpful to reduce the asymmetric information between listed companies and report users. So that investors can take easy to use financial reports as the right investment decisions.Innovation of this study lies in the following two aspects: first, It's more accuracy to calculate manipulative accruals, combining Jones amended model with industry model; second, Increasing two financial index: Price-Profit Rate and Rights-Profit Rate, can reduce data error in the correlative model.